Layoffs Watch: Do U.S. Citigroup Workers Need to Prepare?

It's nice when job hunting is your choice…but sometimes it's not. So, it's a good idea to be prepared. It might be an especially good idea if you work for Citigroup.

According to "Citigroup to Lay Off 4,500 Workers" by Eric Dash on The New York Times, "Facing stalling growth prospects around the globe, Citigroup's chief executive, Vikram S. Pandit, said on Tuesday, December 6, that the bank would lay off 4,500 workers in the coming months." Citi currently has about 100,000 fewer employees than it did at the end of 2007, before the worst of the financial crisis.

Dash writes that while most of the job losses will come from Citigroup's back-office and investment banking operations, nearly every part of Citigroup's sprawling empire will face cuts. Citigroup is only the latest big bank to announce extensive layoffs, following the lead of Banks of America, Goldman Sachs, Wells Fargo, Bank of New York Mellon and almost every large European bank.

"As part of our ongoing efforts to control expenses, we are making targeted headcount reductions in certain businesses and functions across Citi," a spokesman for the bank said in the Reuters article. Firms across Europe, Asia, and the United States have so far slashed well over 120,000 jobs in big cost-cutting drives. Citi's cuts equates to about two percent of its 267,000 workforce. About 10,000 of those staff are in London.

Just in case your position is one of the ones that may be affected by the cuts, it is good to get your ducks in a row, so to speak. Alison Doyle of About.com recommends that you "check on eligibility for continuation of health and life insurance benefits, accrued vacation pay, unused sick pay, and other payments terminated employees may be entitled to," when preparing for a job change. She also recommends that you look into continuing health coverage through COBRA, if necessary.

Then, make sure you have a well written resume — along with a cover letter — that you can tailor to each position you apply for. Doyle says you should also compile a list of references and some letters of recommendation so you're prepared for any requests by a prospective employer. Get the contact information for your co-workers, vendors, customers, and more to use in future networking.

Before you begin your job hunt, it's important to make sure you have a plan of action and things in place before you actually need to use them. Being prepared and knowing how you are going to handle the situation beforehand can be the difference between two weeks or six months of unemployment.

Like they say, finding a job is a full time job, so networking and passively looking for opportunities (via social media, online resources, job boards, etc) while you are employed will make for less work when you actually find yourself in the hot seat after a layoff.

Citigroup's cuts amount to about two percent of its workforce. Should you be worried about losing your job? Maybe not, but it can never hurt to follow the Boy Scout motto and "Be prepared!"

Do you know anyone affected by Citigroup's layoffs? Are you a current Citigroup employee? Do these recent events worry you?

Wade Jones is the co-founder of TruYuu, an online service that helps people present themselves as more than just a resume to employers. You can connect with Wade and the TruYuu team on Facebook and Twitter.